China building shadow fleet to buy Russian gas — Bloomberg
Photo: China is creating its own shadow fleet to import gas from Russia (Getty Images)
China is creating its own shadow fleet of ships to import Russian gas, which is subject to US sanctions, according to Bloomberg.
According to the agency, these efforts are still in their early stages, but tanker movements and ownership in China are beginning to reflect patterns previously seen in Russia.
Experts emphasize that China is stepping up its efforts to import Russian gas subject to US sanctions, laying the foundation for a domestic shadow fleet of ships that can transport gas and circumvent restrictions imposed on one of the Kremlin's flagship industries.
The LNG tanker CCH Gas, which transports Russian gas and is on the blacklist, is concealing its location as it approaches a Chinese port.
Its registered owner, CCH-1 Shipping Co., has a legal address in Hong Kong that coincides with the mailbox of Samxin Secretarial Services Ltd. This is a common practice for companies seeking to conceal beneficial ownership while trading fuel from Iran or Russia.
Another LNG carrier, recently renamed Kunpeng, appeared near Singapore with a similar structure.
Creating a shadow fleet of LNG tankers is no easy task. This is because ships carrying fuel at a temperature of -162°C require more complex loading and transportation technologies than oil.
China will allow private investors to own more than 10% of certain railway and energy projects, which were mostly financed by public funds, effectively removing restrictions on non-state organizations' participation in these enterprises.
Russia's shadow fleet
Russia has created a shadow fleet to export oil and gas in circumvention of international sanctions. According to estimates, approximately one in six tankers in the world belongs to the shadow fleet. In total, this is about 17% of the total number of active tankers.
Most of these are old tankers that have exceeded their service life and operate under the flags of neutral countries. In addition to harming the environment and selling oil in circumvention of sanctions, old ships pose another threat.
It is believed that these tankers are used as platforms for hybrid attacks on Europe. This version has also been confirmed in Ukraine.
